The automotive world is beginning to tremble in Europe: Volkswagen announces the possible closure of two production plants in Germany
A shiver runs through the spine of the German automotive industry. Volkswagen, the Wolfsburg giant, has announced the possible closure of two of its plants in Germany. The news, which has fallen like a bomb in the heart of the German economy, highlights the deep structural crisis that the traditional automotive sector is going through in the face of the unstoppable advance of the electric car. And while European manufacturers were resting on the laurels of combustion, the Chinese dragon was awakening, electrifying not only their roads, but also the future of mobility.
The argument put forward by Volkswagen, the alleged drop in car sales after the pandemic, does not hold up. The market has not disappeared, it has been transformed. The consumer, increasingly aware of the environment and attracted by the performance of electric vehicles, has changed their preferences.
However, the traditional automotive industry, especially in Europe and the USA, has been slow to react, clinging to the profitability of combustion engines and showing a certain reluctance to invest in innovation and development of electric technologies.
This lack of strategic vision has a high price: loss of competitiveness. While Volkswagen is considering closing factories, Chinese companies, with BYD at the forefront, lead the production and sale of electric vehicles globally. These companies, with the support of the Chinese government and a determined commitment to innovation, have been able to anticipate the paradigm shift in mobility, developing their own technologies and creating a complete ecosystem around the electric car, from battery production to charging infrastructure.
Volkswagen’s situation is a symptom of the disease that afflicts much of the European automotive industry: resistance to change in a world that is changing at breakneck speed. The dependence on the combustion engine, the lack of investment in R&D and the inability to adapt to new market demands have put a sector that for decades was the economic engine of Germany and Europe in jeopardy.
The shadow of the closure of Volkswagen plants looms over thousands of workers and their families. The production of electric vehicles requires 30% less labor than traditional vehicles, which translates into a potential massive destruction of employment in a sector that is already beginning to feel the impact of automation and robotization.
Given this panorama, the question is clear: what future awaits the European automotive industry, and Volkswagen in particular, if it does not adapt to change? The answer is complex and requires strong actions by all the actors involved.
I believe there is only one path, rapid change, and the automotive industry must take a new direction and must:
. Accelerating the transition to electrification: It is not just about manufacturing electric cars, but about creating a complete ecosystem that makes them viable: charging infrastructure, development of more efficient and sustainable batteries, and a regulatory framework that encourages the adoption of this technology.
. Investing in innovation and technological development: It is crucial to allocate resources to research into new technologies in the field of electromobility, autonomous driving and connectivity, areas where Europe is lagging behind.
. Investing in training and retraining of the workforce: It is essential to prepare workers in the sector for the new professional profiles that the industry of the future will demand, offering training programs in areas such as electronics, computing or data management.
. Promoting public-private collaboration: The transition to electromobility requires a joint effort between governments, companies and research centers to create a favorable regulatory framework, promote investment in infrastructure and facilitate access to financing.
The Volkswagen crisis is a call to action for the European and North American automotive industry. The future of mobility is electric, connected and partly autonomous. Adapting to this new reality is not an option, it is a necessity to ensure the survival of the sector and preserve the industrial fabric and employment in Europe.
Laments, demonstrations, bombastic statements, etc. are of no use. What is useful is serious work and an urgent change of direction in an industry as important as the automotive industry.
At the moment the Chinese are ahead, but there is knowledge and technology to do many things and we still have time to react.
And the question is: Will we do it???
